Broader markets fall nearly 1.5-2%, under-performing benchmark indices

Markets extended drop in late-afternoon session this Thursday with 50-share Nifty falling below 200-Day Moving Average and hovered near 5,590 levels on back of broad-based selling across sectors.

Investors liquidated long positions amid brewing concerns over political instability at Asia’s third-biggest economy after UPA II government’s key political ally, DMK (Dravida Munnetra Kazhagam) withdrew its support last month and amid reports of an early election signalled by Bhartiya Janta Party (BJP) veteran LK Advani on Wednesday.

At 2:15PM, the Bombay Stock Exchange’s 30-share index Sensex dropped 221 points at 18,583.81 while the National Stock Exchange’s 50-share Nifty shed 79 points at 5,594.

“The political scenario back home is not conducive to invest. If Advani says elections can happen early then it can happen, may be in November,” said Deven Choksey, MD, KR Choksey today.

Mirroring the domestic macro-economic concerns, the foreign funds sold Indian stocks on Wednesday. Foreign institutional investors (FIIs) sold shares worth a net Rs 368.39 crore on 3 April 2013, as per provisional data from the stock exchanges.

Global risk appetite also remained frail after weak economic reports on hiring and service industry growth in the U.S fuelled concerns over growth recovery in the world’s biggest economy.

For more visit: Business Standard

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